Pension part of an estate?

ninamarch123

Hi, my dad passed away a few weeks ago and left some debts. He didn’t have much money in his bank but he does have a private pension. Could these debts be taken from the pension?

I am the beneficiary of his pension so I want to make sure

Thanks! 

Flugelhorn

Generally pensions are not part of the estate and are passed to nominated beneficiaries at the discretion of the trustees

YBR

It is the estate (only) that is liable for the debts

ninamarch123

So is the pension definitely not counted as the estate? Thanks 😊 

Albermarle

It is not counted as part of the estate as the pension never legally belonged to your Father. These pensions are held in Trust by the Trustees of the pension. The Trustees have the final say as to who receives it after the death of the pension holder. However they normally just pass it on to the named beneficiary in the vast majority of cases.

There are certain tax rules on how the beneficiary can take the pension and how old your Father was when he died has an effect.
Worth reading this.
Pension beneficiary rules: Tax, benefits & payouts explained (finder.com)